Lenders urged to declare plans

KGB Packaging is calling on lenders to declare whether or not they intend to commit to active lending so that packagers can plan for market recovery.

Rachel Bancroft, managing director of KGB, says: “I believe that the good news cannot start until all the bad news is finished. We all want to see recovery in the mortgage market, but none of us are going to see any sign of recovery until the full extent of the credit crisis is known.

“Only then can brokers and the public regain confidence in the market.

“I know that ultimately the smaller UK operations don’t have control over what their parent companies wishes are but I am calling on the Investment banks to make decisions now so that distribution firms can plan effectively.”

Bancroft adds: “The phrase about lenders either, lending, pretending or ending was much quoted following the recent mortgage packager summit.

“I really wish that that the ‘ending and pretending’ lenders would decide whether they want to stay or go, so that everyone in the distribution chain understands the true state of the market and can start to plan for the recovery.”